Continental Health Affiliates Reports Fiscal 1998 First Quarter Financial Results.ENGLEWOOD CLIFFS, N.J.--(BW HealthWire)--November 14, 1997-- Continental Health Affiliates, Inc. (Nasdaq:CTHL), today reported financial results for the period ended September 30, 1997. Revenues for the first quarter of fiscal 1998 were $16,257,000, compared with $18,974,000 reported in the same period a year ago. The net income available to common shareholders for the quarter was $19,000, compared with the net income of $17,000 reported for the comparable quarter of fiscal year 1997. The decrease in revenues reflected the sale of The King David Center and the Oceanside Convalescent con·va·les·cent adj. Relating to convalescence. n. A person who is recovering from an illness, an injury, or a surgical operation. convalescent 1. pertaining to or characterized by convalescence. 2. Center in June 1997. Commenting on the results, Jack Rosen, president and chief executive officer of Continental Health Affiliates, stated, "Revenues for the first quarter include steady demand for the company's home infusion therapy home infusion therapy The IV administration of therapeutics–analgesics, antibiotics, chemotherapy, parenteral nutrition–outside of a formal healthcare environment. See Hyperalimentation, Patient-controlled analgesics, TPN. and other medical services through the company's 58%-owned subsidiary, Infu-Tech. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. decreased approximately 11%, primarily resulting from a 21% reduction in personnel costs due to the sale of the King David West David West is the name of several people, including
n the provision of medical, social, and personal care services on a recurring or continuing basis to persons with chronic physical or mental disorders. division." "To maximize the company's current infrastructure, we believe there are additional opportunities in assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. to accelerate our presence in the long-term care marketplace," added Mr. Rosen. "To that end, during the quarter we received $9.2 million in financing from First Toronto Group for the development of a new 120-bed assisted living facility in Pinebrook, New Jersey. We will continue to seek opportunistic opportunistic /op·por·tu·nis·tic/ (op?er-tldbomacn-is´tik) 1. denoting a microorganism which does not ordinarily cause disease but becomes pathogenic under certain circumstances. 2. acquisitions for site development and management of assisted living facilities along the Eastern seaboard, specifically the Northeastern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . It is our continued objective to aggressively pursue growth opportunities in assisted living to serve the senior residence market." "Assisted living has emerged as one of the fastest growing segments in the healthcare industry today for the following reasons: 1) the aging of the U.S. population; 2) greater acceptance and awareness of assisted living as an alternative in the long-term care market; and 3) increasing emphasis on a resident's quality-of-life in the most cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. setting. We believe the company is well-positioned to take advantage of this growth because of its experience in developing and managing long-term care facilities long-term care facility n. See skilled nursing facility. for over 20 years," said Mr. Rosen. "To expand the company's product offering to the long-term care industry, in September we acquired 75% of Bach's Institutional Pharmacy pharmacy, art of compounding and dispensing drugs and medication. The term is also applied to an establishment used for such purposes. Until modern times medication was prepared and dispensed by the physician himself. In the 18th cent. of Hackettsown, New Jersey, a provider of institutional pharmacy services. Bach's services will also be used to serve the company's assisted living and long-term care facilities in New Jersey. We believe the acquisition of Bach's is synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. with our core business strategy, as it allows us to leverage our expertise in alternative care and expand our breadth of services," Mr. Rosen concluded. Infu-Tech will continue to direct its marketing efforts towards its business base of managed care organizations nationwide. Infu-Tech will continue to add innovative products and services, such as disease management and capitated programs, to its core infusion therapy services to further enhance its appeal among managed care companies. Continental Health Affiliates, Inc. is a leading integrated alternative health care provider. The Company owns and operates five long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. health care facilities and one assisted living facility located in New Jersey and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York , and owns a majority of the stock of Infu-Tech, Inc. (Nasdaq: INFU), a leading provider of infusion therapy and other medical products and services to patients in their homes and in long-term care facilities. Certain statements contained in this release are forward looking. Although Continental Health Affiliates, Inc. believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Factors that could cause actual results to differ from expectations include the difficulty in controlling healthcare costs, integrating new operations from acquired companies and the possible negative effects of prospective healthcare reform. For other important factors that may cause actual results to differ materially from expectations and underlying assumptions, see reports by Continental Health Affiliates, Inc. filed with the Securities and Exchange Commission. -0-
CONTINENTAL HEALTH AFFILIATES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Dollars in thousands except per share numbers)
Three Months Ended
9/30/97 9/30/96
Total revenues $ 16,257 $18,794
Net income
54 52
Preferred dividends
(35) (35)
Net income available to
common shareholders $ 19 $ 17
Earnings per share $ 0.00 $ 0.00
Weighted average number of
shares outstanding 10,629,400 9,783,350
CONSOLIDATED BALANCE SHEETS
Sep. 30, June 30,
1997 1997
Cash and cash equivalents $ 1,768 $ 3,796
Working capital 1,041 512
Total assets 69,573 71,350
Total liabilities 61,441 63,302
Total stockholders' equity 5,643 5,624
CONTACT: Continental Health Affiliates, Inc. Evan D. Smith Tel: (201) 567-4600 or Investor Relations Investor relations The process by which the corporation communicates with its investors. : Bruce Voss (bruce@lhai.com) Sue Yeoh (sue@lhai.com) Lippert/Heilshorn & Assoc., Inc. (212) 838-3777 or Media: Rubenstein Associates, Inc. Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most -- Tel: (212) 843-8091 Contact: Amy Rosenberg arosen@rubenstein.com |
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